NATALIE McGarry, the MP for Glasgow East has resigned the SNP party whip and will be automatically suspended.

Ms McGarry, who became an MP in May is at the centre of investigations into the accounts of referendum campaign group Women for Independence which she co-founded.

The group called in the police after it was discovered there was tens of thousands of pounds unaccounted for.

She maintains she has done nothing wrong, but after pressure mounted on her to resign, she quit last night.

Earlier in the day Nicola Sturgeon said she wanted more details before deciding on taking action.

Ms McGarry’s resignation takes the decision out of the hands of party bosses.

In a statement her solicitor Aamer Anwar said: “She has taken this step in the best interests of the party and the constituents of the east end who voted for her.

“She maintains she has done nothing wrong but is conscious that the events of the last 48 hours are distracting from the job she was elected to do on behalf of the SNP.”

Mr Anwar said Police Scotland have not yet established criminality and what they are investigating is “discrepancies.”

He added: “I have instructed forensic accountants to obtain all the necessary information which will then be provided on Natalie’s behalf to WFI as well as Police Scotland to assist them in reaching a swift conclusion.”

Ms McGarry remains the MP for Glasgow East.

Glasgow Times: Glasgow seven MPs who have been given a 10% pay riseLabour and the Tories have called on the SNP to explain how much was known about the allegations by the party and when.

Jackie Baillie, Labour’s public services spokeswoman has asked Nicola Sturgeon to explain the SNP’s involvement.

In a letter to the First Minister, Ms Baillie said: “Can you confirm when SNP officials, representatives or candidates at any level were first made aware of the allegations surrounding Natalie McGarry?

“Reports today confirm that seven of the WFI committee members who reported these allegations to the police are SNP candidates.

“Can you confirm when any of these people first became aware of the allegations? Can you confirm what discussions have taken place between SNP officials or senior elected members and these WFI national committee members about these allegations?”

Jackson Carlaw, Conservative deputy leader said the SNP must answer crucial questions and accused the First Minister of “dithering” by refusing to suspend Ms McGarry.

He said the SNP must explain when it was first informed of the allegations and when WFI members who are SNP candidates knew.

He said: “This is highly damaging for Scottish politics, and very much brings it into disrepute.

“The SNP is very quick to point the finger at others for this kind of thing, so it must answer the questions we have posed as quickly as possible.”